Today's best "to the point" market summary from Bloomberg (full article):
Standard & Poor’s said Germany and France may be stripped of their AAA credit ratings as the debt crisis prompts 15 euro nations to be put on review for possible downgrade.
Just how bad is the market volatility? One of my favorite data blogs, Bespoke, put together a great chart depicting how wild of a ride it has been. From the post,
Going back to the beginning of August, the S&P 500 is down just about 2%, but over that period the index has seen eight declines of 5% or more and eight advances of 5% or more. To put this volatility into perspective, there were two periods in the 1990s where the S&P 500 went more than a year without a single decline of 5% or more.
While I like looking at Gold's chart and seeing a cup with handle formation, many technical analysis professionals have been focusing on a larger symmetrical triangle formation. Peter Blandt highlighted the formation today but noted caution moving forward. Apparently formations too close to the apex are commonly proven to yield fake-outs when they ultimately break instead of a long term buy or sell signal. Translation: make sure you have stops on Gold if you buy on the break!
Last but not least StockCharts.com contributor Arthur posted an interesting chart of the Home Construction iShares (ITB) ETF. Arthur notes the group is one of the strongest in the market currently. Morningstar tells me the top five holdings in the ETF includes NVR, DHI, LEN, TOL, and PHM. Might be worth adding to the watch list.
And lastly with interesting market analysis and thoughts for today aside, below is an updated look at the S&P 500 which tested its 200 MA. Also take note of the uptrending 50 MA because it could very quickly come back into play if the market retracts this week.
Stay frosty out there and I will see you tomorrow!